Financial Presentation - Kyocera were up due primarily to an increase in sales of industrial tools reflecting growing demand and M&A activity coupled with an increase in sales of displays

October 31, 2017

Hideo Tanimoto

President and Representative Director

This is an English translation of the Japanese original of conference call material. The translation is prepared solely for the reference and convenience of

foreigners. In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail.

Financial Presentation(Six Months Ended September 30, 2017)

1

1. Financial Results for the Six Months Ended September 30, 2017

Note: Kyocera has changed the classification of its reporting segments from FY3/2018. Business results for FY3/2017 have been reclassified

in line with the change to reporting segment classifications in this document.

2

(Unit: Yen in millions)

Amount % to net sales Amount % to net sales Amount %

653,243 100.0% 738,345 100.0% 85,102 13.0%

33,785 5.2% 69,505 9.4% 35,720 105.7%

48,578 7.4% 87,840 11.9% 39,262 80.8%

36,153 5.5% 61,387 8.3% 25,234 69.8%

36,042 5.5% 34,824 4.7% -1,218 -3.4%

29,969 4.6% 30,912 4.2% 943 3.1%

28,951 4.4% 27,450 3.7% -1,501 -5.2%

US$

Euro

Net sales

Pre-tax income

Change

Depreciation

Six Months Ended September 30,

2016 2017

R&D expenses

Average exchange

rate (yen)

Foreign currency fluctuation

effect on;(compared with

the previous same period)

Net sales

Profit from operations

Pre-tax income

Net income attributable to Kyocera Corporation's

shareholders

Capital expenditures

¥ 105

¥ 118

Approx. ¥ -63 billion


¥ 111

¥ 126

Approx. ¥ 24 billion

Approx. ¥ 7 billion

Posted record high first half sales and profit up significantly

Financial Results for the Six Months Ended September 30, 2017- Compared with the Six Months Ended September 30, 2016 -


Amount % of net sales Amount % of net sales Amount %

Industrial & Automotive Components Group 107,749 16.5% 131,010 17.7% 23,261 21.6%

Semiconductor Components Group 117,316 17.9% 126,881 17.2% 9,565 8.2%

Electronic Devices Group 114,165 17.5% 137,253 18.6% 23,088 20.2%

339,230 51.9% 395,144 53.5% 55,914 16.5%

Communications Group 114,059 17.4% 123,937 16.8% 9,878 8.7%

Document Solutions Group 147,435 22.6% 172,020 23.3% 24,585 16.7%

Life & Environment Group 61,830 9.5% 52,813 7.1% -9,017 -14.6%

323,324 49.5% 348,770 47.2% 25,446 7.9%

Others 10,735 1.7% 9,319 1.3% -1,416 -13.2%

Adjustments and eliminations -20,046 -3.1% -14,888 -2.0% 5,158 －

653,243 100.0% 738,345 100.0% 85,102 13.0%

Six months ended September 30,Change

Equipment & Systems Business

Net Sales

2016 2017

Components Business

3

Sales by Reporting Segment for the Six Months Ended September 30, 2017- Compared with the Six Months Ended September 30, 2016 -

Increased sales in both the Components Business and Equipment & Systems Business


Amount % to net sales Amount % to net sales Amount %

Industrial & Automotive Components Group 6,395 5.9% 14,752 11.3% 8,357 130.7%

Semiconductor Components Group 9,764 8.3% 17,937 14.1% 8,173 83.7%

Electronic Devices Group 13,029 11.4% 21,880 15.9% 8,851 67.9%

Components Business 29,188 8.6% 54,569 13.8% 25,381 87.0%

Communications Group -4,830 － 2,230 1.8% 7,060 －

Document Solutions Group 12,867 8.7% 20,090 11.7% 7,223 56.1%

Life & Environment Group -740 － -373 － 367 －

Equipment & Systems Business 7,297 2.3% 21,947 6.3% 14,650 200.8%

Others -1,414 － 430 4.6% 1,844 －

35,071 5.4% 76,946 10.4% 41,875 119.4%

13,507 － 10,894 － -2,613 -19.3%

48,578 7.4% 87,840 11.9% 39,262 80.8%

Change

Corporate and Others

Pre-tax income

Operating Profit

Six months ended September 30,

2016 2017

4Note: “Operating profit” represents combined pre-tax income of all reporting segments.

Operating profit up significantly due to sales growth and cost reductions

Achieved double-digit operating profit ratio in all reporting segments of the Components Business

as well as Document Solutions Group

Operating Profit by Reporting Segment for the Six Months Ended September 30, 2017

- Compared with the Six Months Ended September 30, 2016 -

117.3126.9

9.8

17.9

00

500

1,000

1,500

8.3%

14.1%

107.7

131.0

6.4

14.8

00

500

1,000

1,500

5.9%

11.3%

5

Financial Results for H1 of FY3/2018 by Reporting Segment (1)

<Major factors for changes>


Industrial & Automotive Components Group

Semiconductor Components Group

FY3/2017 H1 FY3/2018 H1

(Unit: Yen in billions)


Sales Operating profit Operating profit ratio ( ) Change from H1 of FY3/2017 (%)

FY3/2017 H1 FY3/2018 H1

Sales were up due primarily to an increase in sales of

industrial tools reflecting growing demand and M&A

activity coupled with an increase in sales of displays

and components for semiconductor processing

equipment

Operating profit doubled due to the increase in sales

and cost reductions, while the operating profit ratio

improved to the double-digit level

Sales were up due to an increase in sales of ceramic

packages for smartphones and organic packages for

telecommunications infrastructure

Operating profit increased substantially due to the

increase in sales and cost reductions, while the

operating profit ratio improved to the double-digit level

(+21.6%)

(+130.7%)

(+8.2%)

(+83.7%)

114.1123.9

-1000

500

1,000

1,500

1.8%

114.2

137.3

13.0

21.9

00

500

1,000

1,500

11.4%

15.9%

6



Electronic Devices Group

Communications Group



FY3/2017 H1 FY3/2018 H1


FY3/2017 H1 FY3/2018 H1


Sales were up due to an increase in sales in the

information and communications services business and

an increase in sales of mobile phones for the Japanese

market

Operating profit returned to the positive due to the

higher sales and a reduction of fixed costs

Sales were up due mainly to an increase in sales for

capacitors, crystal components and connectors used in

smartphones and an increase in sales of printing

devices for industrial equipment

Operating profit was up significantly due to the sales

growth and cost reductions

-4.8

2.2

(+20.2%)

(+67.9%)

(+8.7%)

(¥ +7 billion)

147.4

172.0

12.9

20.1

00

500

1,000

1,500

2,000


61.852.8

0

500

1,000

8.7%

11.7%

7




Life & Environment Group

Document Solutions Group



FY3/2017 H1 FY3/2018 H1

FY3/2017 H1 FY3/2018 H1

Sales were down due to downsizing of the solar energy

business in the United States

Operating loss was recorded due to the sales decline

and an increase in R&D expenses despite efforts to

reduce costs

Sales were up due primarily to an increase in sales

volume on the back of launching new products and

aggressive sales promotion activities coupled with the

contribution of sales following M&A activity

Operating profit increased significantly due to the sales

growth, cost reductions and the impact of foreign

exchange rates, while the operating profit ratio improved

to the double-digit level

-0.7 -0.4

(+16.7%)

(+56.1%)

(-14.6%)

(¥ +0.3 billion)

8

2. Financial Forecasts for the Year Ending March 31, 2018


Amount % to net sales Amount % to net sales Amount % to net salesYear ended

March 31, 2017

Previous

Forecast

1,422,754 100.0% 1,500,000 100.0% 1,560,000 100.0% 137,246 60,000

(＋9.6%) (＋4.0%)

104,542 7.3% 120,000 8.0% 135,000 8.7% 30,458 15,000

(＋29.1%) (＋12.5%)

137,849 9.7% 150,000 10.0% 170,000 10.9% 32,151 20,000

(＋23.3%) (＋13.3%)

103,843 7.3% 105,000 7.0% 119,000 7.6% 15,157 14,000

(＋14.6%) (＋13.3%)

282.62 － 285.55 － 323.62 －－－

67,781 4.8% 80,000 5.3% 80,000 5.1%

66,019 4.6% 75,000 5.0% 75,000 4.8%

55,411 3.9% 60,000 4.0% 60,000 3.8%

US$

Euro

Net sales

Pre-tax income

Change in amount

compared with

(Ratio of increase)

Net income attributable to Kyocera

Corporation's shareholders

Depreciation

EPS (Diluted-yen)

Year ending March 31, 2018 (Forecast)

Previous (May 2017) Revised (October 2017)

Year ended March 31,

2017

R&D expenses

Average exchange

rate (yen)

Foreign currency fluctuation

effect on;(compared with

the previous same period)

Net sales

Profit from operations

Pre-tax income

Capital expenditures

¥108

¥119



¥111

¥128

Approx. ¥ 29.0 billion

Approx. ¥ 12.0 billion

¥108

¥115

Approx. ¥ -6.5 billion

Approx. ¥ -4.0 billion

Please refer to forward-looking statements on the final page.

Financial Forecasts for the Year Ending March 31, 2018

9

2. EPS (Diluted-yen) of revised forecast for FY3/2018 is computed based on the diluted average number of shares outstanding during the six months ended September 30, 2017.

Notes: 1. EPS (Diluted-yen) of previous forecast for FY3/2018 is computed based on the diluted average number of shares outstanding during the three months ended June 30, 2017.

Please refer to forward-looking statements on the final page. 10

Sales Forecast by Reporting Segment


Amount % of net sales Amount % of net sales Amount % of net sales

Industrial & Automotive Components Group 230,229 16.2% 246,000 16.4% 280,000 18.0% 49,771 34,000

Semiconductor Components Group 245,727 17.3% 248,000 16.5% 256,000 16.4% 10,273 8,000

Electronic Devices Group 240,798 16.9% 254,000 17.0% 289,000 18.5% 48,202 35,000

716,754 50.4% 748,000 49.9% 825,000 52.9% 108,246 77,000

Communications Group 252,641 17.7% 269,000 17.9% 255,000 16.4% 2,359 -14,000

Document Solutions Group 324,012 22.8% 350,000 23.4% 350,000 22.4% 25,988 －

Life & Environment Group 149,207 10.5% 153,000 10.2% 139,000 8.9% -10,207 -14,000

725,860 51.0% 772,000 51.5% 744,000 47.7% 18,140 -28,000

Others 22,066 1.5% 16,000 1.0% 17,000 1.1% -5,066 1,000

Adjustments and eliminations -41,926 -2.9% -36,000 -2.4% -26,000 -1.7% 15,926 10,000

1,422,754 100.0% 1,500,000 100.0% 1,560,000 100.0% 137,246 60,000

Equipment & Systems Business

Net Sales

Change in amount

compared with

Components Business


Previous (May 2017) Revised (October 2017)


2017

Year ended

March 31, 2017

Previous

forecast



Amount % to net sales Amount % to net sales Amount % to net sales

Industrial & Automotive Components Group 22,442 9.7% 26,000 10.6% 30,000 10.7% 7,558 4,000

Semiconductor Components Group 25,310 10.3% 26,000 10.5% 35,000 13.7% 9,690 9,000

Electronic Devices Group 30,558 12.7% 33,000 13.0% 40,000 13.8% 9,442 7,000

Components Business 78,310 10.9% 85,000 11.4% 105,000 12.7% 26,690 20,000

Communications Group 8,528 3.4% 13,000 4.8% 1,000 0.4% -7,528 -12,000

Document Solutions Group 28,080 8.7% 35,000 10.0% 40,000 11.4% 11,920 5,000

Life & Environment Group 1,345 0.9% 3,000 2.0% 1,000 0.7% -345 -2,000

Equipment & Systems Business 37,953 5.2% 51,000 6.6% 42,000 5.6% 4,047 -9,000

Others -1,759 － -3,000 － -1,000 － 759 2,000

114,504 8.0% 133,000 8.9% 146,000 9.4% 31,496 13,000

23,345 － 17,000 － 24,000 － 655 7,000

137,849 9.7% 150,000 10.0% 170,000 10.9% 32,151 20,000

Previous

forecast

Change in amount

compared with

Corporate and Others

Pre-tax income

Operating Profit


Previous (May 2017) Revised (October 2017)Year ended March

31, 2017


2017

Operating Profit Forecast by Reporting Segment

Note: “Operating profit” represents combined pre-tax income of all reporting segments.

150170

0

500

1,000

1,500

2,000

10.0% 10.9%

1,500 1,560

0

5,000

10,000

15,000

20,000

12

Previous Revised

+60 billion yen

（+4.0％）

+20 billion yen

（+13.3％）

Sales

Pre-tax income

Main Reasons for Revision to FY3/2018 Forecasts

1. Component orders exceeded expectations,

especially for smartphones, industrial machinery

and automobiles

Upswing in 1H results

Semiconductor processing

equipment parts

Ultra-small, high-capacity

ceramic capacitors

Crystal devices Camera modules

2. Production capacity bolstered significantly since

previous fiscal year

3. Enhanced profitability in each business by

reducing costs and boosting productivityPrevious Revised




245.7 248.0 256.0

25.3 26.0

35.0

00

500

1,000

1,500

2,000

2,500

3,000

230.2246.0

280.0

22.426.0

30.0

00

500

1,000

1,500

2,000

2,500

3,000

10.3% 10.5%13.7%

9.7% 10.6% 10.7%

13

Industrial & Automotive Components Group

Semiconductor Components Group




Previous Revised

FY3/2018 forecast

FY3/2017

Financial Forecasts of FY3/2018 by Reporting Segment (1)

Sales and profit projected to exceed previous

fiscal year and previous forecast due to an

increase in sales of ceramic packages for

smartphones and organic packages for

telecommunications infrastructure

Operating profit ratio projected to increase due

to higher sales and cost reductions



increase in demand, particularly for parts used in

industrial machinery and automotive-related

markets

Previous RevisedFY3/2017

Sales Operating profit Operating profit ratio

FY3/2018 forecast

252.6269.0 255.0

8.5

13.0

1.000

500

1,000

1,500

2,000

2,500

3,000

240.8254.0

289.0

30.6 33.040.0

00

500

1,000

1,500

2,000

2,500

3,000

3.4%4.8%

0.4%

12.7% 13.0% 13.8%

14

Electronic Devices Group

Communications Group





Profit forecast to decrease compared with the

previous fiscal year due primarily to the impact

of lower sales of mobile phones for North

America despite a forecast of increased sales on

the back of sales growth in handsets for Japan

and telecommunications modules

Sales and profit forecast to decrease compared

with previous forecast since sales of handsets

for North America are short of projections made

at the start of the fiscal year



increase in sales of capacitors, crystal

components and connectors for smartphones and

an increase in demand for printing devices used

in industrial equipment

Previous Revised

Previous Revised


FY3/2018 forecast

FY3/2017

FY3/2017

FY3/2018 forecast

149.2 153.0139.0

1.33.0

1.0

00

500

1,000

1,500

2,000

324.0350.0 350.0

28.135.0

40.0

00

1,000

2,000

3,000

4,000

0.9%2.0% 0.7%

8.7%10.0%

11.4%

15

Life & Environment Group

Document Solutions Group (Unit: Yen in billions)




Sales and profit projected to decrease compared

with the previous fiscal year and the previous

forecast since sales in the solar energy business

are short of projections made at the start of the

fiscal year

Sales and profit forecast to increase compared

with the previous fiscal year due to sales growth

in new products

Profit forecast to increase compared with the

previous forecast due to cost reductions and the

effects of the yen’s depreciation

Previous Revised

Previous Revised


FY3/2018 forecast

FY3/2017

FY3/2017

FY3/2018 forecast

16

Operations: Apr. 2017

Initiatives to Expand Sales (1) Increase Production Capacity (Ⅰ)

Aggressive investment to increase production of components

for semiconductor processing equipment (SPE)

US Washington plant new wing online

Kagoshima Kokubu Plant

Started building new factoryOperations: Oct. 2018 (planned)

Conceptual drawing of new wing


High temp

Plasmaenhanced

High precision

Lighter

Production up two-fold in components for SPE

• Increased demand for SPE

• Greater need for ceramics in structural parts due to enhanced sophistication

Production up two-fold in components for SPE

17

No.7 factory

OPC※drumToner container

Production capacity by 2.5-fold by 2020

※OPC : Organic Photo Conductor

Initiatives to Expand Sales (1) Increase Production Capacity (Ⅱ)


Conceptual drawing of factory No.2

Production capacity by 2-fold by 2020

Increase production and promote full automation

for toner containers and photoreceptor drums■Factory No.7 at the Tamaki Plant, Mie

Started production in June 2017

■China factory OPC drum factory No.2

Plan to start operation in May 2018

No.7 factory production line

Planned

construction site

18

Concluded basic agreement to acquire

power tool business of Ryobi Limited

- Promote Diversification in Industrial Tool business -

Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅰ)

[Outline of Agreement]

Target business Manufacturing and sales operations of Ryobi’s power tool business

Expected date of

acquisitionJanuary 2018

Outline of share

acquisition

Kyocera to acquire 80% of shares in a company to be established by

incorporation-type company split that will assume Ryobi’s power tool

business.

Main objectives(1) Expand product lineup

(2) Strengthen power tool business in Japan and Asia markets

Impact drivers Circular saws Grinders Hedge clippers

Pleas refer to forward-looking statements on the final page.

19

Create structure as comprehensive tool maker

Handle from cutting tools to pneumatic and power tools

General industrial

market

Automotive-

related market

Construction

market

(Joined Group in Augst 2017) (Plans to join Group in January 2018)

Cutting tools Pneumatic tools Power tools

- Promote Diversification in Industrial Tool Business -

Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅱ)


Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅲ)

Our sensors and control modules help improve automotive safety and comfort

Target business Transportation, Sensing & Control division (“TS&C”) from TT Electronics PLC

Main business Development, manufacture and sale of sensors, LED modules, control modules, etc.

TS&C sales Approx. 35 billion yen (FY12/2016)

Joined Group October 2017

Main objectives

• Expand product portfolio by adding devices, including sensors for temperature, position and

speed

• Continue sales growth in Europe and expand in NAFTA & Asia automotive market

- Expand Automotive Sensors Business in AVX Corporation -

Emission temp.

sensorsDEF/AdBlue

sensorsChassis height

sensors

Inverter & control

modules

Electronic pump

control

Control of LED main

headlight modules

Sensors Control Modules


21

Acquired

companyUS-based DataBank IMX, LLC

Business

outline

Sales Approx. 10 billion yen (FY12/2016)

Date

acquiredAugust 2017

Main

objectives

• Create new business model by integrating MFP/printer

business with ECM/document BPO business

• Strengthen services in US market

Initiatives to Expand Sales (2) Expand Business Area through M&A (Ⅳ)

Reinforce business expansion as a total document solutions provider

※1 ECM：Enterprise Contents Management ※2 BPO：Business Process Outsourcing

• ECM business

Solutions realizing data integration, efficient

management and workflow automation

• Document BPO business

Provide outsourcing services for document-related

business

*1

*2

- Strengthen Documents Solutions Group -

ECM system Document data

HospitalFinancial

institution

Company

Outsource document-

related business

Provide equipment and document

digitization as a set


22

Management Policy

Reduce costs through process reform

Double productivity via AI, robots, etc.

Strengthen internal tech synergies

Utilize external resources

Collaborate with Toshiba Materials Co., Ltd. on

development and manufacturing of ceramic parts

using new materials

Integrates Group’s medical and healthcare

resources to swiftly create new business

Medical Development Center (Shiga Yasu Plant)

Expand existing business through

major cost reductions

Create new business by boosting ties

inside and outside company

Established Medical Development Center


Conduct robot utilization tests, etc.

Provide tools using AI to business divisions

Amass and provide knowhow on big data

analysis and management

Support use of robots in business divisions

AI Laboratory

(Yokohama Nakayama Office)

Robot Utilization Center

(Osaka Daito Office)

50 50 60

50 60

60

23

Dividend Forecast

FY3/2016 FY3/2017 FY3/2018

（Forecast）

¥110¥100

¥120

¥110

FY3/2018 dividend forecast revised upward

Interim Dividend per share (yen)

Dividend forecast at the beginning of each fiscal year (yen)

Year-end Dividend per share (yen)


1,526.51,479.6

1,422.8

1,560.0

121.9

145.6137.8

170.0

0

3,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2015/3 2016/3 2017/3 FY18

8.0%

9.8% 9.7%10.9%

24

Enhance management

foundations

Record High

FY3/2015 FY3/2016 FY3/2017 FY3/2018（Forecast）


Trend of Sales and Pre-tax Income

Sales Pre-tax income Pre-tax income ratio

Aim for record sales

and double-digit pre-tax

income ratio

Achieve ¥2 trillion

in sales by FY2021


Certain of the statements made in this document are forward-looking statements (within the meaning of Section 21E of the U.S. Securities and Exchange Act of 1934),

which are based on our current assumptions and beliefs in light of the information currently available to us. These forward-looking statements involve known and unknown

risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to the following:

(1) general conditions in the Japanese or global economy;

(2) unexpected changes in economic, political and legal conditions in countries where we operate;

(3) various export risks which may affect the significant percentage of our revenues derived from overseas sales;

(4) the effect of foreign exchange fluctuations on our results of operations;

(5) intense competitive pressures to which our products are subject;

(6) fluctuations in the price and ability of suppliers to provide the required quantity of raw materials for use in Kyocera’s production activities;

(7) manufacturing delays or defects resulting from outsourcing or internal manufacturing processes;

(8) shortages and rising costs of electricity affecting our production and sales activities;

(9) the possibility that future initiatives and in-process research and development may not produce the desired results;

(10) companies or assets acquired by us not produce the returns or benefits, or bring in business opportunities;

(11) inability to secure skilled employees, particularly engineering and technical personnel;

(12) insufficient protection of our trade secrets and intellectual property rights including patents;

(13) expenses associated with licenses we require to continue to manufacture and sell products;

(14) environmental liability and compliance obligations by tightening of environmental laws and regulations;

(15) unintentional conflict with laws and regulations or newly enacted laws and regulations;

(16) our market or supply chains being affected by terrorism, plague, wars or similar events;

(17) earthquakes and other natural disasters affecting our headquarters and major facilities as well as our suppliers and customers;

(18) credit risk on trade receivables;

(19) fluctuations in the value of, and impairment losses on, securities and other assets held by us;

(20) impairment losses on long-lived assets, goodwill and intangible assets;

(21) unrealized deferred tax assets and additional liabilities for unrecognized tax benefits;

(22) changes in accounting principles;

Such risks, uncertainties and other factors may cause our actual results, performance, achievements or financial condition to be materially different from any future results,

performance, achievements or financial condition expressed or implied by these forward-looking statements. We undertake no obligation to publicly update any forward-

looking statements included in this document.

Forward-Looking Statements